FCA & CySEC
We have US manufacturing PMI estimates due for release at 2.45pm GMT and this could offer some direction on dollar crosses as a robust reading here would play to Federal Reserve hawks and with EUR/USD looking a little inflated above 1.07, there’s profit to be taken here from the recent run higher. There’s also US existing home sales data set for release at 3pm GMT and although a decline is expected here, it’s tipped to be a modest fall. Obviously any significant variation from expectations would have the potential to again skew the dollar’s standing, especially if house buyers are getting wary over the future even with rates down at these lows.
Japanese manufacturing PMI data was released overnight and although it was a little hotter than expected, USD/JPY failed to make a sustained move lower. We’ve seen a notable slide in the pair over the year to date and until we get a better picture over trans-pacific trade ties, it’s perhaps going to be difficult for the Yen to advance any further even against a backdrop of favourable economic data. Trade balance data at 11.50pm GMT tonight will be the next option, although again the risk here is likely tipped on the upside for USD/JPY.